E-mini S&P 500 Index (ES) Futures Technical Analysis – Weakens into Close Under 3369.50

December E-mini S&P 500 Index futures are down sharply at the mid-session on Monday as surging coronavirus cases and a stalemate in Washington over the next fiscal stimulus bill darkened the economic outlook in the run up to the November 3 presidential election.

At 16:16 GMT, December E-mini S&P 500 Index futures are trading 3387.75, down 64.00 or -1.85%.

Reuters is reporting that new infections have touched record levels in the United States, with El Paso, Texas asking citizens to stay home for the next two weeks. In Europe, Italy and Spain imposed new restrictions.

All major S&P 500 sectors were trading lower with economically-sensitive energy, industry and financials recording the steepest percentage declines.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through 3198.00. A move through 3541.00 will signal a resumption of the uptrend.

The minor trend is down according to the daily swing chart. This is controlling the downside momentum. The minor downtrend was reaffirmed earlier today when sellers took out Thursday’s low at 3402.50. A trade through 3462.50 will change the minor trend to up and shift momentum to the upside.

The intermediate range is 3576.25 to 3198.00. The index is currently trading on the weak side of its retracement zone at 3387.25 to 3431.75.

The minor range is 3198.00 to 3541.00. Its retracement zone at 3369.50 to 3329.00 is the primary downside target.

The main support range is 3246.25 to 3168.50.

Short-Term Outlook

Based on the current price at 3378.25, the direction of the December E-mini S&P 500 Index into the close is likely to be determined by trader reaction to a pair of 50% levels at 3387.25 and 3369.50.

Bullish Scenario

A sustained move over 3387.25 will signal the presence of buyers. If this creates enough upside momentum then look for a possible rally back to 3431.75.

Bearish Scenario

A sustained move under 3369.50 will indicate the selling pressure is getting stronger. This could trigger an acceleration to the downside with the next potential downside target a support cluster at 3330.50 to 3329.00.

For a look at all of today’s economic events, check out our economic calendar.